Optimal Strategy

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Capital One just launched the new Savor card targeted towards foodies who like to occasionally travel.

The basics

Annual fee: $0

Sign up bonus: $150 after you spend $500 within the first three months

3% cash back on dining

2% on groceries

1% everywhere else

No foreign transaction fees

I think this card is good if you're early in your credit journey or you travel once/twice per year and don't want to pay foreign transaction fees.

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World Elite Mastercard Benefits

The Savor card is a World Elite Mastercard, so it comes with a handful of purchase and travel benefits. View the complete benefits guide here.

Luxury hotel portfolio (same as the Amex FHR/Visa LHC)

Car rental elite status

Shop Runner

Price protection

Extended warranty

Trip cancellation/interruption insurance

Travel assistance services

Travel accident insurance

Bag delay insurance

Identify theft resolution services

Complimentary concierge service

If you're someone who already has premium credit cards or you like playing the 5x quarterly game, then this card is not the best for you.

Let's run through some situations.

Savor vs. Chase Sapphire Reserve

On the surface, it might seem like the Savor and the Chase Sapphire Reserve are similar because they earn 3% and 3x back on dining, respectively, along with no foreign transaction fees. When we dive deeper, Ultimate Reward points are worth significantly more than cash back when you redeem for travel.

Savor = 3% back on dining

Chase Sapphire Reserve = 3x UR back on dining

Chase Travel Portal

UR points = 1.5 cents per point

3x UR * value of points (1.5 CPP) = 4.5% return on spend

Transfer Partners

UR points = 2 CPP

3x UR * 2 CPP = 6% Return on spend

Yes, the Chase Sapphire Reserve does have a $450 annual fee. Watch our video hereto see if it's worth it for you.

A few assumptions:

UR points = 1.5 CPP

x = $ spend on dining

Full $300 travel credit is used

Breakeven:

Savor = CSR

$0 + 0.03x = $300 - $450 + 0.03(1.5)(x)

0.03x = -$150 + 0.045x

0.015x = $150

x = $10,000

This also assumes that, for some reason, you have $0 in travel expenses. The Chase Sapphire Reserve makes sense if you spend more than $10,000 on dining/year.

5x Optimizer category cards

I like 5x cash back cards. Whenever I can optimize and maximize a category, I'm earning $150 cash back for each quarter, with each card ( I have two Discover It cards).

For example, let's say Q1 of the Discover It card is grocery stores. The big problem is that groceries are only eligible for 5x cash back for three months. I'll buy $1,500 worth of grocery gift cards to maximize the category and use the gift cards throughout the year.

Specialized cards

There are a few specialized cards to consider as options:

3% Gas = NRA, Sam's Club, Fort Knox, Amex OBC, USAA Amex, FNBO Ducks

3%/6% Groceries = Amex BCE/BCP

3% Dining = Chase AARP

It's up to you to crunch the numbers to see if it's worth adding the Savor card to your wallet if you have a specialized card.

The main factor to consider is if the Savor card is worth getting to avoid foreign transaction fees.

Bottomline

Overall, the Capital One Savor card is a solid option, especially if you're someone who doesn't travel much, and is looking for cash back without the annual fee.

Apple and Goldman Sachs will partner to create a new iPhone-connected credit card set to launch later this year. According to the WSJ, the card will integrate with the iPhone to track spending, points, and help with budget management.

Booking a flight with the right credit card can make or break a trip, especially if unexpected delays happen. Missed connections or canceled flights can leave a hole in your wallet, and some airlines will only provide food vouchers and overnight accommodations if the delay with within their control.

There’s a misconception going around that the Amex Platinum card earns 5x on ALL hotel stays. To clarify, the Amex Platinum only earns 5x points when you book hotel nights through amextravel.com or the Fine Hotels and Resorts Collection (FHR).

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Editorial Note: Opinions expressed here are the author's alone, not those of any bank, credit card issuer, airlines or hotel chain, vendors or companies, and have not been reviewed, approved, or otherwise endorsed by any of these entities.

AskSebby Disclaimer: Content on AskSebby represents one individual’s experiences and viewpoints, and your experience may differ. The owner of this site is not an investment advisor, financial planner, nor a legal or tax professional. Articles here are of an opinion and general nature and should not be relied upon for individual circumstances. Research and obtain professional advice regarding all credit decisions before attempting to duplicate any of the techniques described on this website.